Intestacy / Tenants in Common / Probate / Buyout

1049424

I am not seeking legal advice but rather am interested in responses to the following hypotetical scenario.

Widowed mother dies intestate. Four siblings inherit family home as Tenants in Common. If all are in agreement that three will buy out the share of the fourth can this happen before the probate process has been completed? My understanding is that the moment the mother dies the children inherit an equal share of the house; however, I'm unsure of when the share can be bought/sold and my understanding is that probate presently takes at least a year in Ireland. Thanks to anyone who has any thoughts on this.

dermot_sheehan

The three children can disclaim their interest, it then goes back into the estate and to the fourth child.

If the mother dies intestate, the estate vests in the president of the high court, when letters of administration are taken out (probate when there is no will) it vests in the personal representative who took out the letters of administration. He or she holds the property on trust for those entitled to benefit under the intestacy. At this stage the beneficiaries who do not want to inherit can execute a disclaimer and give it to him, and he can vest the property in the remainding child.

Jo King

The legal title in the house vests in the personal representative, so any dealing in the house can't be done until the interests are transferred. In theory the house might have to be sold to pay debts and would never pass to the siblings. One option is for the three siblings to renounce their shares in the estate in consideration for payment.

dats_right

The Estate of an Intestate vests in the President of the High Court until a Grant of Letters of Administration are taken out and Administrator(s) appointed.

1049424

Thanks for the responses, folks!

dats right: That's basically a "No" which is what I expected.

However, whilst gabhain7 and Jo King seem to have flipped the original idea (ie that 3 buy out the fourth rather than the other way around), I am curious about the idea of renouncing one's share "in consideration of payment." I presume that this can only happen once a Grant of Letters of Administration has occurred or is it in any way conceivable before?; I assume not but would be grateful for any clarification on this point.

Also, for tax purposes, is this payment viewed as being an inheritance from the parent? Sorry for what seems like a dumb question but is there any way that the tax-free allowance wouldn't apply if the share was renounced in consideration of payment?

Sincere thanks if anyone takes the time to respond further!

Jo King

All four can enter into an agreement regarding the distribution of the estate (if they are the only potential beneficiaries) at any time. The money paid to one to renounce his share will be treated as an inheritance for tax purposes. It may well be below the threshold.

1049424

Thanks Jo King. Thats pretty much what I was hoping would be the case.